Key Takeaways
- • U.S. power consumption is projected to rise from approximately 4.4 TWh in 2025 to 5.7 TWh by 2030, with data centers accounting for a significant portion of the increase, according to Marquette Associates research.
- • PJM Interconnection peak load is forecast to reach 251 GW by 2046, versus 181 GW of current capacity, widening the gap that must be closed through new generation, transmission, and storage.
- • Successive upward revisions to demand forecasts underscore the scale of anticipated electricity needs and pressure on existing grid infrastructure.
- • Marquette sees opportunities across regulated utilities, contracted power generation, renewable energy, and battery storage, with core and core-plus infrastructure strategies viewed as well positioned.
- • Execution risks tied to permitting, grid interconnection, construction timelines, and regulatory frameworks remain material considerations.
Summary
A Marquette Associates research piece titled "The Power Demand Supercycle" examines the accelerating growth of U.S. electricity demand, driven primarily by the rapid expansion of data centers and increasing adoption of artificial intelligence. According to the research, U.S. power consumption is projected to rise from approximately 4.4 TWh in 2025 to 5.7 TWh by 2030, with data centers accounting for a significant portion of that increase.
The trend is especially pronounced in the PJM electricity market, which serves all or parts of 13 states and the District of Columbia. Peak load, the highest level of electricity demand at a given time, is now forecast to reach 251 GW by 2046, significantly exceeding the 181 GW of current capacity. The research notes that successive upward revisions to demand forecasts underscore the magnitude of anticipated needs and the growing pressure on existing power infrastructure.
Marquette argues that this widening gap between projected demand and available capacity creates a substantial investment opportunity across the broader energy infrastructure ecosystem. Significant capital will be required to expand generation, modernize transmission and distribution networks, and deploy energy storage to maintain grid reliability. For infrastructure investors, the research identifies opportunities in regulated utilities, contracted power generation, renewable energy, and battery storage.
The firm also flags execution risks, including permitting, grid interconnection, construction timelines, and regulatory frameworks. Core and core-plus infrastructure strategies, which hold long-duration assets supported by regulated or contracted cash flows, may be particularly well positioned to benefit from this structural demand growth.
The trend is especially pronounced in the PJM electricity market, which serves all or parts of 13 states and the District of Columbia. Peak load, the highest level of electricity demand at a given time, is now forecast to reach 251 GW by 2046, significantly exceeding the 181 GW of current capacity. The research notes that successive upward revisions to demand forecasts underscore the magnitude of anticipated needs and the growing pressure on existing power infrastructure.
Marquette argues that this widening gap between projected demand and available capacity creates a substantial investment opportunity across the broader energy infrastructure ecosystem. Significant capital will be required to expand generation, modernize transmission and distribution networks, and deploy energy storage to maintain grid reliability. For infrastructure investors, the research identifies opportunities in regulated utilities, contracted power generation, renewable energy, and battery storage.
The firm also flags execution risks, including permitting, grid interconnection, construction timelines, and regulatory frameworks. Core and core-plus infrastructure strategies, which hold long-duration assets supported by regulated or contracted cash flows, may be particularly well positioned to benefit from this structural demand growth.
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